UPDATE: Morgan Stanley Lowering Price Target On Google (GOOG)

Morgan Stanley is lowering its price target on shares of Google GOOG to $645, but the New York-based investment bank is keeping its Overweight rating on shares. This follows Google's Q1 earnings report, which was held last night after the bell. In a note to clients, Morgan Stanley writes, "Although we believe Google Instant has delivered revenue upside, several challenges overshadow this strength. We think investors will now focus on management changes, near-term margin declines, intermediate-term regulatory risks, and long-term competition – quite a wall for a stock to climb. The key CQ1 confirmation is that margin expectations have been reset to a new, lower level. We maintain our OW rating but lower our forecasts and cut our target price to $645, removing Google from our Best Ideas list." Shares of GOOG are off $37.96, a loss of nearly 7% today to trade at $540.55. This comes on more than 6.7 million shares.